Given the following information, what is JEM Inc.'s weighted average cost of capital? Market value of equity = $50 million; market value of debt = $30 million; cost of equity = 16%; cost of debt = 8%; equity beta = 1.25; tax rate = 34%.

A) 11.98%
B) 11.45%
C) 11.29%
D) 12.32%
E) 13.00%

Weighted Average Cost of Capital

This refers to the overall cost of capital for a firm, weighted by each capital component's proportion in the overall capital structure.

Market Value of Equity

The total dollar market value of a company's outstanding shares, calculated as share price times the number of shares outstanding.

Cost of Equity

The return that investors expect for investing in a company's equity, indicating the compensation the market demands for taking on the risk of owning the stock.